July 3, 2017 / 3:26 AM / 2 months ago

Morning News Call - India, July 3

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    FACTORS TO WATCH
    10:15 am: NITI Aayog CEO Amitabh Kant, Finance Secretary Ashok Lavasa at an
event in New Delhi.
    11:00 am: SEBI Chairman Ajay Tyagi to address SCOPE members in New Delhi.
    
    FX WEEK AHEAD
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm IST. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India launches new economic era with sales tax reform
    India early on Saturday introduced its biggest tax reform in the 70 years
since independence from British colonial rule.
    • Washington tells India Westinghouse could be sold by year end
    The U.S. administration has told India that Westinghouse Electric Co will
emerge from bankruptcy and be sold by the year end, industry and diplomatic
sources have said, raising the prospect of a Washington-supported sale or
bailout for the nuclear firm.
    • Modi says cancelled registration of 100,000 companies
    India has cancelled the registration of more than 100,000 companies which
were "in violation of laws", Prime Minister Narendra Modi said, in the latest
effort by the government against "black money" and tax evasion.
    • Indian automakers, retailers lure customers with discounts as GST kicks in
    Some of India's biggest automakers and retailers announced price cuts on
Saturday as Asia's third-largest economy switched to a new nationwide sales tax
at the stroke of midnight, replacing a host of provincial and national levies.

    • Modi heads to Israel, lifting the curtain on close ties
    Narendra Modi is making a first visit to Israel by an Indian prime minister
this week, in a public embrace of a country that he has long admired for its
military and technical expertise but which his predecessors kept at arm's
length.
    • Thyssenkrupp wants less than 50 percent of Tata steel JV - Handelsblatt
    German industrial group Thyssenkrupp aims to hold less than half of a steel
joint venture it wants to set up with Tata Steel so it can deconsolidate the
business from its balance sheet, Handelsblatt reported, citing a company source.

    • Indian Railways safety overhaul at risk due to rail shortage- documents
    A planned $15 billion safety overhaul of India's ageing rail network is
facing delays as the country's state steel company is unable to meet demand for
new rails, according to two government documents seen by Reuters.
    • India presses Microsoft for Windows discount in wake of cyber attacks
    India is pressing Microsoft Corp to offer a sharply discounted one-time deal
to the more than 50 million Windows users in the country so that they can
upgrade to the latest Windows 10 operating system in the wake of ransomware
attacks.
    
    
    GLOBAL TOP NEWS
    • Japan PM's party suffers historic defeat in Tokyo poll, popular governor
wins big
    Prime Minister Shinzo Abe's Liberal Democratic Party suffered an historic
defeat in an election in the Japanese capital on Sunday, signalling trouble
ahead for the premier, who has suffered from slumping support because of a
favouritism scandal.
    • U.S. warship in operation near disputed island in South China Sea
    A U.S. warship sailed near a disputed island in the South China Sea claimed
by China, Taiwan and Vietnam on Sunday in an operation meant to challenge the
competing claims of all three nations, a U.S. Defense Department official said.

    • Japan firms most upbeat in 3 years but labour shortages weigh - BOJ tankan
    Confidence among Japan's big manufacturers hit its highest level in more
than three years in the June quarter, a closely-watched central bank survey
showed, adding to signs the recovery in the world's third largest economy is
gaining pace.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were at 9,524.00, up 0.08 percent from previous
close.
    • The Indian rupee will likely edge lower against the dollar in early trade,
tracking a shift in appetite for risk assets after major central banks signaled
likely tightening in monetary policies in coming months.
    • Indian government bonds are likely to fall today after the Reserve Bank of
India announced a surprise open market sale of debt this week. The yield on the
benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.51
percent-6.57 percent band today.
    
    
    GLOBAL MARKETS
    • Major U.S. stock indexes ended a volatile week on a modestly high note on
Friday, led by a surge in Nike shares, and the S&P 500 scored its biggest gain
for the first half of the year since 2013 while the Nasdaq Composite's
first-half gain was its best in eight years.
    • Asian stocks held two-years highs, starting the new month on a solid
footing after two quarters of gains while expectations of credit tightening by
the world's major central banks kept global bond markets under pressure.

    • The dollar edged off from a nine-month low against a basket of currencies,
but it remained shaky as signs central banks in Europe were moving away from
accommodative monetary policies kept the euro and sterling well bid.
    • U.S. Treasury yields rose on Friday as inflation data was not seen as weak
enough to delay the Federal Reserve’s expected path on interest rate hikes, and
as investors worried about less accommodative central banks in Europe.
    • Oil prices edged up, supported by the first fall in U.S. drilling activity
in months, although rising output from OPEC despite a pledge to cut supplies
capped gains.
    • Gold held steady, ahead of the U.S. Independence day holiday, as the
dollar hovered at near nine-month lows hit last week on signs of monetary
tightening by global central banks.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.69/64.72  June 30          --           $11.77 mln
 10-yr bond yield  6.87         Month-to-date    $385.27 mln  $4.56 bln
                                Year-to-date     $8.37 bln    $18.00 bln
 
    
    
    For additional data:
    India govt bond market volumes                 
    Stock market reports                
    Non-deliverable forwards data              
    Corporate debt stories               [IN CORPD]
    Local market closing/intraday levels [IN SNAPSHOT]
    Monthly inflows                      [INFLOWS RTRS TABLE IN]
 
($1 = 64.58 Indian rupees)

 (Compiled by Benny Thomas in Bengaluru)
  

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